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More Falling Rates: GMAC, Countrywide, Presidential, Bank of America

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ING Direct isn't the only one to quickly lower their rates after the Fed rate cut. Here are the latest online banks to make savings account rate cuts since my yesterday's rates update post:
  • GMAC Bank's Money Market Savings: 4.50% APY (used to be 4.75%)
  • Countrywide's savingslink: 5.35% APY (used to be 5.50%)
  • Presidential's Premier Savings: 4.60% APY (used to be 4.90%) and their Checking Plus: 3.75% APY (used to be 4.00%)
  • Bank of America's DoW Money Market Savings: 4.29% APY for $10K+ tier (used to be 4.45%)

Countrywide also lowered its CD rates. The highest internet CD rate is now only 5.40% APY for a 6-month term (down from 5.65%). The yields for the 9-month and 12-month terms are now 5.30% APY and 5.20% APY (down from 5.45% and 5.65%).

To be fair to ING Direct, at least they only cut the Orange Savings Account rate by 10 basis points to 4.20% APY. GMAC's rate cut was 25 basis points and Presidential's cut was 30 basis points.
  Tags: Presidential Bank (MD), savings account, Bank of America

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Comments
18 comments.
Comment #1 by Snipper (anonymous) posted on
Snipper
I've got a Money Market savings account at GMAC, and my experience with their Web site and banking services has been positive -- but I'm unhappy about their swift rate slashing.

However, I suppose that this news (http://tinyurl.com/27mkqs) has a lot to do with their decisions right now.

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Comment #2 by Anonymous posted on
Anonymous
GMAC just lost my money. Their problems are only going to get worse now that they've lowered to 4.5%. I'm going to go with Countrywide. 5.35% is sure a lot better than 4.5%

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Comment #3 by Bill (anonymous) posted on
Bill
Yes, GMAC has now cut 79 basis points from their MMA yields and the Fed has only cut 75 bp. I don't like the idea of moving money around all the time to chase rates, but now that GMAC is out in front of the Fed I'm moving a sizable chunk of money away from them. I do like GMAC's ACH facility and the ability to move funds promptly and easily, so I'll keep my accounts with them open, at least for the time being.

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Comment #4 by snipper (anonymous) posted on
snipper
Anonymous @ 9:36 AM and Bill @ 10:35 AM, you typed the words right out of my mouth, so to speak. I'm thinking of transferring most of my GMAC funds to a new account elsewhere, probably at Countrywide.

However, a friend commented pointedly that I should keep in mind WHY Countrywide is offering higher rates right now. I'm wondering whether I should wait for the dust to settle, allowing institutions to adjust their interest rates in the wake of the Fed's change, before I leap into a new account. And would it be riskier to open accounts at Countrywide, GMAC, Indymac, and others who are "in trouble" from the whole sub-prime mortgage fiasco, regardless of how attractive their interest rates seem right now?

What do you think, Banking Guy? (And BTW, thanks for providing such a useful resource! I check your blog daily to stay on top of good deals and general trends.)

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Comment #5 by Anonymous posted on
Anonymous
I'm sticking with GMAC until the dust settles.

I've been thinking about Citi or WAMU. 5% with B & M access is starting to look very appealing. Anyone have feedback on either?

Of course either of them is liable to drop their rate at any time since neither did after the initial Fed cut.

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Comment #6 by Tim (anonymous) posted on
Tim
i'm sticking with igobanking at 5.17%...figure in a week or two they will lower, but will still remain above 5%.

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Comment #7 by Anonymous posted on
Anonymous
igobanking here, too; they'll probably lower soon, but they've been nice to me, so I'll be nice to them.

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Comment #8 by Anonymous posted on
Anonymous
Apple Bank's Grand Yield Direct also down from 5.15% to 5.00%.

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Comment #9 by ShraZZy (anonymous) posted on
ShraZZy
AmtrustDirect will be down soon. They just dropped their CD rates.

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Comment #10 by tba02 (anonymous) posted on
tba02
re: I've been thinking about Citi or WAMU. 5% with B & M access is starting to look very appealing. Anyone have feedback on either?

I have a WAMU account that works just fine for me. I am not very demanding and pretty much just have the money sitting there. The B/M aspect is nice for deposits and if I need access to my funds it takes about two minutes to move it to checking and write a check if needed. I'm waiting for the dust to settle as well, but if WAMU holds at 5% I am most likely moving my 50+k in ING over to that account.

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Comment #11 by Anonymous posted on
Anonymous
Wamu rocks always :)

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Comment #12 by Anonymous posted on
Anonymous
I too love the GMAC web site. However, I love it a lot less since the rate went under 5%. I had FDIC limit there until rate cuts and now have only a few thousand which will be moved monday leaving enough to keep account open. I really dislike CD's but saw the writing on the wall with the first Fed cut so I went to Cd"s. CD's are not so bad if you stagger matuuity dates. I now have most of my money in CD'S that all mature in 3 to 24 months. Rates vary between 5.35 and 5.75. I beleive there will probally be one more cut and then a few months of unchanged before heading back up in year or so.Of course that is just my uneducated opinion .

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Comment #13 by Anonymous posted on
Anonymous
Countrywide has lowered its CD rates again today. 6 month is now 5.35%, down from 5.4 this morning :o(

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Comment #14 by a_rog (anonymous) posted on
a_rog
Speaking of falling rates...

I got up early today to do some first-of-the-month bookkeeping and found that my Apple Bank Grand Yield Savings rate has just dropped again to 4.88% (5.00%APY) - down from 5.15%APY.

- no big shock & like you have been saying, it was just a matter of time - some are just faster than others.


iGObanking's iGOsavings account will drop the hammer soon I'm sure - I do appreciate them holding out longer than these other trigger happy banks.

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Comment #15 by Mike (anonymous) posted on
Mike
Two rate cuts and Wamu is holding at 5%.

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Comment #16 by Anonymous posted on
Anonymous
Interestingly, Countrywide is continuing its past practice of offering higher CD rates for amounts $10,000 and above to California residents, compared to their overall "Internet" rates (though both types can be opened online, without a branch visit).

(PS-I haven't checked to see if this same state-based variation is happening with other states besides California).

If you type a California zip code in the location box on their CD rates web page, you'll see APYs as of Sat. morning (post Fed cut) that were 5.35% for 3 and 12 month, 5.45% for 9 month, and 5.55 for 6 months.

Those compare to their current "Internet" rates of 5.2% for 12 month, 5.3% for 9 month, 5.35% for 3 month, and 5.4% for 6 month.

The longer CD terms, however, both appear to be the same (California and Internet rates) at 5%.

If you happen live in California, the shorter term CD rates they're continuing to offer are pretty darned good, especially in the wake of the latest Fed cut.

Unfortunately for us Cali folks, there is no such difference, for their SavingLink account, which fell to a still appealing 5.21% rate/5.35% APY for $10K to $100K balances in the wake of the Fed's action.

John from Los Angeles

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Comment #17 by Bill (anonymous) posted on
Bill
Washington D.C. and suburbs' Chevy Chase Bank is currently offering a 5.3% APY 7 mos CD for amounts over $100,000. The yield decreases with the amount deposit, but is still 5.25% APY for $25K and up. The extra 5 bp kicks in at $100K. I talked to the CSR when I opened a CD at my branch yesterday. She said they change the rates as needed and had no idea when the next change would be. This is by far the best "bank" deal I have found in the DC area at the moment. I will be very surprised if the rate hold much longer though.

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Comment #18 by Anonymous posted on
Anonymous
"Countrywide has lowered its CD rates again today. 6 month is now 5.35%, down from 5.4 this morning :o("

This lower rate for the Countrywide 6 month CD seems to show up only in certain markets. When I click on banking guys link it still shows 5.40%, but if you enter a Michigan zip it shows the lower rate of 5.35%. Must be differences in areas, such as the higher California rates?

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